Telesat Canada Announces Pricing of Notes Offering
November 09 2016 - 5:27PM
Telesat Canada (“Telesat”), a wholly-owned subsidiary of Telesat
Holdings Inc. (“Telesat Holdings”), today announced the pricing of
an offering of US$500 million aggregate principal amount of 8.875%
senior notes due 2024 (the “Senior Notes”) by Telesat and Telesat
LLC (together with Telesat, the “Issuers”). This represents a
US$250 million decrease from the proposed offering size previously
announced by Telesat, which amount is expected to be reallocated to
term loan borrowings as described below. The Senior Notes are being
issued at par. The Senior Notes are expected to be issued on or
around November 17, 2016, subject to customary closing conditions.
Concurrently with the consummation of the offering of Senior
Notes, Telesat expects to enter into a new credit facility that
provides for term loan borrowings of US$2,430 million and revolving
credit borrowings of up to US$200 million. This represents a
proposed US$250 million increase in term loan borrowings from
Telesat’s previous announcement. Telesat intends to use the net
proceeds from the proposed offering of Senior Notes, together with
the proceeds from term loan borrowings under the new credit
facilities and cash on hand, to (i) redeem its US$900 million
aggregate principal amount outstanding of 6.0% senior notes due May
15, 2017, (ii) repay all borrowings outstanding under its existing
credit facilities, (iii) pay related fees and expenses and (iv) if
completed, fund its previously announced cash distribution to its
shareholders.
The Senior Notes are being offered only to qualified
institutional buyers in reliance on Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”), and, outside the
United States, only to non-U.S. investors pursuant to Regulation S
under the Securities Act. The Senior Notes will not be registered
under the Securities Act or any state securities laws and may not
be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act or other applicable securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offering, solicitation or sale would be unlawful. Any
offers of the Senior Notes will be made only by means of a private
offering memorandum. No assurance can be made that the Senior Notes
will be issued.
Forward-Looking Statements Safe HarborThis news
release contains statements that are not based on historical fact
and are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. When used in this
news release, the words “will”, “intends”, “expects”, “would” or
other variations of these words or other similar expressions, as
well as information concerning payment of a potential cash
distribution, are intended to identify forward-looking statements
and information. Actual results may differ materially from the
expectations expressed or implied in the forward-looking statements
as a result of known and unknown risks and uncertainties. Detailed
information about some of the known risks and uncertainties is
included in the “Risk Factors” section of Telesat Holdings’ Annual
Report on Form 20-F for the fiscal year ended December 31, 2015
which can be obtained on the SEC website at http://www.sec.gov.
Known risks and uncertainties include but are not limited to:
risks associated with operating satellites and providing satellite
services, including satellite construction or launch delays, launch
failures, in-orbit failures or impaired satellite performance,
volatility in exchange rates and risks associated with domestic and
foreign government regulation. The foregoing list of important
factors is not exhaustive. The information contained in this news
release reflects Telesat’s beliefs, assumptions, intentions, plans
and expectations as of the date of this news release. Except as
required by law, Telesat disclaims any obligation or undertaking to
update or revise the information herein.
About Telesat
Telesat is a leading global satellite operator, providing
reliable and secure satellite-delivered communications solutions
worldwide to broadcast, telecom, corporate and government
customers. Headquartered in Ottawa, Canada, with offices and
facilities around the world, Telesat’s state-of-the-art fleet
consists of 15 satellites plus the Canadian payload on ViaSat-1
with two new satellites under construction. An additional two
prototype satellites are under construction and will be deployed in
low earth orbit. Telesat also manages the operations of additional
satellites for third parties. Privately held, Telesat’s principal
shareholders are Canada’s Public Sector Pension Investment Board
and Loral Space & Communications Inc. (NASDAQ:LORL).
For further information:
Michael Bolitho, Telesat, +1 (613) 748-8700 ext. 2336 (ir@telesat.com)
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